A business model is a framework for creating economic, social, and/or other forms of value. The term business model is thus used for a broad range of informal and formal descriptions to represent core aspects of a business, including purpose, offerings, strategies, infrastructure, organizational structures, trading practices, andoperational processes and policies.
In the most basic sense, a business model is the method of doing business by which a company can sustain itself -- that is, generate revenue. The business model spells-out how a company makes money by specifying where it is positioned in the value chain.
Core capabilities: The capabilities and competencies necessary to execute a company's businessmodel.
Partner network: The business alliances which complement other aspects of the business model.
Value configuration: The rationale which makes a business mutually beneficial for a business and its customers.
Value proposition: The products and services a business offers. Quoting Osterwalder (2004), a value proposition "is an overall view of products and services that togetherrepresent value for a specific customer segment. It describes the way a firm differentiates itself from its competitors and is the reason why customers buy from a certain firm and not from another."
Target customer: The target audience for a business' products and services.
Distribution channel: The means by which a company delivers products and services to customers. This includes thecompany's marketing and distribution strategy.
Customer relationship: The links a company establishes between itself and its different customer segments. The process of managing customer relationships is referred to as customer relationship management.
Cost structure: The monetary consequences of the means employed in the business model. A company's DOC.
Revenue: The way a companymakes money through a variety of revenue flows. A company's income.
An auction is a process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the winning bidder. In economic theory, an auction may refer to any mechanism or set of trading rules for exchange.
There are several variations on the basic auction form, including time limits,minimum or maximum limits on bid prices, and special rules for determining the winning bidder(s) and sale price(s). Participants in an auction may or may not know the identities or actions of other participants. Depending on the auction, bidders may participate in person or remotely through a variety of means, including telephone and the internet. The seller usually pays a commission to theauctioneer or auction company based on a percentage of the final sale price.
The business values are the structure of all big company. In many recent business management books and journals, developing, adopting, and implementing values has been identified as perhaps the single key in the success of many high growth, high profit companies. A passion for a value and itsimplementation into the daily activities of work was identified by many as the single key to their business success.
A value is a belief, a mission, or a philosophy that is really meaningful to the company. An example of a business value is: "Customer Satisfaction." Another example of a value is "Being Ethical and Truthful." Every company has one or more values, whether they areconsciously aware of it or not. Another way of saying it is that a value is a statement of the company's intention and commitment to achieve a high level of performance on a specific QUALITATIVE factor.
In many recent business management books and journals, developing, adopting, and implementing values has been identified as perhaps the single key in the success of many high growth, high profit...